He said Denel is in the process of modernising its product offerings in most of its divisions to provide it with a competitive edge in the global defence industry. The company will continue to develop world-class products in the strategic areas of artillery, unmanned aerial vehicle systems, ammunition and in the provision of maintenance services to aircraft and helicopters on the African continent.
The company is steadily growing its order book and is pursuing an opportunity pipeline of R35bn of which almost 50% is on the African continent, including within South Africa. There are also a number of opportunities in other primary target markets in South America, the Middle East and the Asia-Pacific region.
Saloojee said Denel has undergone significant restructuring in the past year with 11 businesses integrated into six divisions. Support services are now shared across the group leading to cost optimisation and savings. Revenue has improved by more than 10% and profit grew by R30m to R71m. The only remaining loss-making unit in the group, Denel Aerostructures, has improved its position by 35%. Exports now contribute 50% of the group's revenue.
The company is investing more than R528m a year in research and development which will grow in the coming years with a specific focus in the fields of artillery and UAVS production. Denel is improving its technology base in the field of asymmetrical warfare through the acquisition of specialised armoured vehicle manufacturer, LMT, and the introduction of new missile technology.
Among its primary achievements during the past year were the delivery of the final Rooivalk combat support helicopter to the SA Air Force, the on-going qualification of the A-Darter air-to-air missile in collaboration with Brazil and the start of the contract to deliver the Badger infantry combat vehicle to the SA Army.
Saloojee said Denel continues to contribute to national developmental objectives through skills development and socio-economic initiatives and support for the efforts to combat rhino poaching and protect South Africa's natural resources.
The company is repositioning itself as an employer of choice through innovative branding and recruitment strategies. It spends 3% of payroll - R46m - on skills development and provides bursaries to students in a range of engineering and artisan training fields.
